| Landram Corporation makes a product with the following standard costs: |
| Inputs | Standard Quantity or Hours | Standard Price or Rate |
| Direct materials | 2.0 kilos | $7.00 per kilo |
| Direct labor | 1.3 hours | $11.00 per hour |
| Variable overhead | 1.3 hours | $3.00 per hour |
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In March the company produced 5,000 units using 10,310 kilos of the direct material and 2,290 direct labor hours. During the month, the company purchased 10,880 kilos of the direct material at a cost of $76,760. The actual direct labor cost was $38,241 and the actual variable overhead cost was $11,942. |
| The company applies variable overhead on the basis of direct labor hours. The direct materials price variance is computed when the materials are purchased. |
| The materials quantity variance for March is: |